Pennsylvania Electricity Deregulation

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Deregulation Milestones in Pennsylvania:

Information taken from the U.S. Energy Information Administration. For more information on the history of deregulation in Pennsylvania, please visit the EIA Pennsylvania Restructuring website.

December 1996: House Bill 1509, known as the Electricity Generation Customer Choice and Competition Act, was enacted.

March 1998: Pilot programs, completed by lotteries, became fully subscribed with more than 72,000 participants to make it the largest pilot program in the country.

July 1998: Two-thirds of Pennsylvania consumers were allowed to begin signing up to participate in the first phase-in of competition. In the first week, over 1.1 million consumers signed up for the Electric Choice Program.

September 1998: About 1.8 million consumers have registered to choose their electric generation supplier and have received a "How to Shop" guide with a list of competitive suppliers. All residential customers were estimated to receive an 8% rate reduction while competitive suppliers estimated savings of 14%. Also, 4 "Green-e" products (a product with the Green-e logo is certified to be produced with 50% or 100% generation from renewables) are being offered to Pennsylvania customers.

January 1999: Retail access became available for two-thirds of the state's consumers on January 1.

September 1999: Almost half of a million consumers in the state switched suppliers, mostly in the Philadelphia area, due to PECO having some of the highest rates in the state prior to deregulation.

January 2000: All consumers in PA were now able to have retail access to competitive electricity suppliers. The Office of Consumer Advocate reports just over 507,000 consumers have switched to competitive suppliers.

September 2000: The PA Dept. of Revenue projected that electric competition would create more than 36,000 new jobs in the state by 2004 due to the savings, which will trickle down to other areas of local businesses.

August 2001: PUC approved a settlement that preserved rate caps, encouraged use of alternative generation suppliers and increased support of renewable energy.

July 2002: PA Office of Consumer Advocate reported competitive suppliers were serving over 300,000 consumers representing a load of 2.142 MW. This is down from over half a million reported in April 2002.

January 2010: Rate caps expired in Penn Power and Light’s (PPL) service area with PPL consumers expected to see rates rise. Other utilities’ service areas rate caps expired in early 2011.